Are you scared to invest when trapped in debt?

Having a safe financial future is what we all look for in our daily lives. We do almost everything-- switching jobs, look for the best offers and even constantly working-- to develop financial stability.
 
Any extra amount arising from our hard-work is always considered an option for investment to further strengthen our financial stability. There are many tools in banking system like savings account and fixed deposits.
 
If you are a beginner, you can go a recurring deposit scheme available in banks for investment. You can also consider options like mutual fund and stock market scheme.
 
Often we are reluctant for investment because of already piled up debt on our head. Generally, extra money just ends up in paying interest and recovering the debt, therefore, we are hardly left with anything for investment.
 
However, we should always make an effort for investment even though we are in debt. Here's what we need to know according to BankBazaar.
 
The BankBazaar report says, "Being disciplined and trying to strike a balance between investing and paying off debt isn’t an easy thing to do. You need to grab a calculator and make a few calculations. Before considering investing as an option, you need to know how much you can afford to invest."
 
First payment and then investment
 
Paying your debt off and also trying to invest could be a little difficult.
 
So always try to start making minimum payments first. If you do not follow this, it would mean higher interest, late fees and penalties. In case you didn’t know, this process could also affect your Credit Score(not in a good way).
 
We need to make sure that we keep enough money aside for investment schemes and still have enough left to make those minimum payments on our debt.
 
Higher Interest always first priority
 
Whether it may be Credit Card debt or other loans, you must start paying off the one that has the highest interest rate.
 
BankBazaar says unless you’re sure about being able to manage these high-interest debts, its advisable to not invest.
 
After the higher interest debt is under control, then you are free to make investment of your choice in any schemes. However, you need to remember, when it comes to credit cards, that you have to be extra careful with interest rates.
 
"Making just the minimum payment every month is going to make things worse," the report added.
 
Choose investment options wisely
 
You should always study the investment pool before making any investment.
 
You should decide when and where to invest only after looking at factors like rate of interest and timelines.
 
If you have enough financial bandwidth, you can think about investing in some long-term plans. Or else, there are short term investment options like low-cost mutual funds.
 
You can think about investing as they are considered as rewarding options.
 
After choosing the investment option, you need to  set up automatic monthly transfers of money into an investment account and automate your bills as well.
 
This way, you can manage both debt and investment pool. Automated deductions make it easier for you to plan your money well. Once your financial plans are set, investing becomes a cakewalk.